Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
$ ?' C/ l3 S$ S- @companies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
4 J- V' I' V' @) [4 f5 j3 i, ^crude prices improves. This implies also to good names such as Shell,
# L$ ]3 @0 w+ ~7 B  O& a* `- H: iEXXON, BG, BP, Cheveron ....xyz.. oils
1 D. H+ z, F+ j( ]: v; J0 d
Recently OPEC reduced crude oil production twice over just a few
# v0 l8 \$ r" s: W$ I0 \months. There are three wars going on in Gaza, Iraq and Afghandistan.
; y+ K: S4 [& p4 }1 _, hA year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.
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There are several reasons the price of oil is decreasing in the face
( D2 }& g: E! k3 `& sof so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
4 m- j, @% I8 G0 N1 I# k3 N: Xin the ocean near Brazil. Each of these oil fields has more oil than
  s; U  V& \1 u: a  w1 @0 xArabia.


2. New natural gas has been found in Pennsylvania and West Virginia.
! ]% j- S3 V6 M9 L# g1 ?' wThis is the largest find in North America.


3. New methods of injecting CO2 and surfactants into oil wells is
+ t/ m$ f8 X4 A+ K2 nbeing used to double their output.


4. Production of bio-fuels is beginning to reach critical mass. Bio
7 {3 h+ m5 o+ H' nfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
/ A! j% i1 Q# Nracing to produce bio fuels.


5. Virtually every restaurant in the US and all food processing plants
% l, ?) t  k) \& N9 U% q8 [- Ware now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
. y* ^* \$ L% yto bio-diesel producers. One pork processing plant in Oklahoma is
1 f9 P! I# d" C. |, g) R% _producing 30,000 gallons of bio-diesel per day from pork fat.

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6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
2 B" s+ a& X1 Q& Oexpected to be built in the future. Much of the energy they produce
will replace oil.


7. Every company in any form of transportaion business is replacing
9 Y4 H; }, y; g6 B2 Lolder equipment such as trucks, airplanes, train engines, ships, etc.
" Q. P) D- v  k: e  G; vwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
% {/ @* J+ {: ^" Gequipment.
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9 Z+ M# N6 \3 X$ H1 s  S4 O2 v' m
Airlines are flying airplanes with bio-fuel. They are finding the bio-
" m" P# k/ [" h, Z; v& E! Gfuel is cleaner and performs better than jet fuel.


8. Cities and counties throughout the US are selling the rights to
( f' G  t* K$ @0 Y; U5 X4 f3 ?capture methane gas from landfills. This is a huge source of gas
. b* Q4 q3 A. q+ g9 f, B% ~! Kavailable at very little cost or risk. The gas is displacing crude
9 `* z2 W1 k6 H6 g9 }  Xoil.


3 S% M/ h$ L( p% R9. Coal is being transformed into a clean burning liquid fuel. The CO2
6 u1 l; _/ h( B1 R3 aproduced as a byproduct is sold to oil companies for injection into
6 v0 f7 o. C2 P6 ]0 i8 P+ o, T+ soil wells.


10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.
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$ A4 `! f/ r0 o5 pEach of the above by itself will not make a large difference in the
' s# f; e1 g; t- tprice of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
to control oil prices.

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With the above scenario, I still believe that there are under
7 H7 _; ^, n. \  w  f6 U# S3 cperformed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

' f% x! S: n# V2 `
3 `! H$ U! `; o1 jThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only